Jafco exits shredder maker to Japan Industrial Solutions

Jafco - which now focuses predominantly on venture capital investments - acquired a 93% stake in Meiko alongside management for JPY20.64 billion ($173 million) in 2007. The investment was the firm’s last from its JPY48 billion Jafco Buyout Fund II, which reached final close in 2004.

Set up in 1959, Meiko produces a range of high-capacity document shredders under the MS Shredder brand. In addition, it manufactures MS Pouch, a line of office laminators, and MS Voice Call Next, an automated waiting ticket system. Headquartered in Tokyo, the company's clients include government agencies, educational institutions, finance institutions and power companies.

JIS was set up in 2010 by a consortium comprising the Development Bank of Japan (DBJ), Mizuho Bank, Sumitomo Mitsui Banking Corporation (SMBC), Bank of Tokyo Mitsubishi UFJ, Mitsubishi Corp., and company management.

This is the seventh investment to come via the GP’s debut vehicle, which was launched with a target of JPY100 billion. An initial capital injection of JPY10 billion each came from Bank of Tokyo, DBJ and SMBC; it also recieved undisclosed committments from Mitsubishi Corp. and Deutshe Bank.

The fund predominantly focuses on providing mezzanine capital to mid-size companies in the manufacturing sector. Its previous investments include textiles manufacturer Unitika, to which it committed JPY10 billion in May last year, and wire-rope manufacturer Tokyo Rope, which received JPY2.5 billion in the same month.

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• Topics
• North Asia
• Consumer
• Industrials
• Exits
• Secondaries
• Japan
• JAFCO
• manufacturing
• buyout
• Secondaries
• Exit